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42. Tom O'Brien has a 3-stock portfolio with a total valne of $100,000. $20,000 is invested in Stock A with a beta of 0.70, $50,000 is invested in Stook B with a beta of 1.40 and the remainder is invested in Stock C with a beta of 2.0. What is his portfolio's beta? b. 1.23 c. 1.29 d. 1.44 e. 1.42 43. Assume that you hold a well-diversified portfolio that has an expected return of 11.0 and a beta of 1.20. You are in the process of buying 1,000 shares of Alpha Corp at $10 a share and adding it to your portfolio. Alpha has an expected retorn of 13.0 and a beta of 1.50. The total value of your current portfolio is $90,000. What will the expected return and beta on the portfolio be after the purchase of the Alpha stock? a. b. c, d. e, 10.64t: 11,20%; 11.76%; 12.35%; 12.97%; 1.17 1.23 1.29 1.36 1.42 44. Calculate the required rate of return for Martin Enterprises given a market risk premium of 12% and the risetree rate is 3.09 and the ME's beta s 1.40 a. 10.29 b. c. 16.40 d. e. 19.80% 15.60% 12.60% 15. Prom the information in the table below, determine the portfolio given a risk-free rate of 2% and the market portfolio returning 109; expected return of the Stock Beta Current Value of stock $7,000 8,000 5, 000 1.3 2.0 a. 14.08 b. 13.08% c. 17.10% d. 16.10% Not enough information provided to compute. e. 46. Ryngaert Inc. recently issued bonds that mature in 15 years. They have a par value of $1,000 and an annual coupon of 5.7%. If the current market interest rate is 7.0%, what is the price of the bonds? a. $817.12 b. $838.07 c. $859.56 d. $881.60 e. $903.64

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